Building a resilient economy

What is the news? Amidst the hopes of a V-shaped recovery of the Indian economy, the National Statistical Office (NSO) had recently estimated that India’s economic growth has surged to 20.1% in the April-June quarter, despite a devastating second wave of COVID-19. It also stated that the gross domestic product (GDP) had contracted by 24.4% in… Continue reading Building a resilient economy

The irrelevance of Indian GDP estimates to most of our citizens

Synopsis: Economic recovery is unlikely to prove sustainable when most basic indicators of human development show a worsening of our situation. Introduction Estimates of gross domestic product (GDP) for the first quarter of fiscal year 2021-22 were released on 31 August. This year’s first-quarter estimate shows a 20%-plus GDP growth. However, the real issue is… Continue reading The irrelevance of Indian GDP estimates to most of our citizens

Where’s The V-Shaped Recovery?

Synopsis: Govt should recognize the evidence of distress and job loss in India. V-shaped recovery is still far away. Introduction According to the government, India’s economy is bright and strong since headline GDP grew 20% in the recent quarter after falling 24% in the same quarter last year. However, it is important to evaluate the… Continue reading Where’s The V-Shaped Recovery?

The economic reforms — looking back to look ahead

Synopsis: Systemic policy reforms are required to unlock creativity and innovation in the economic system, raise the total factor productivity (TFP) and to achieve higher growth. Introduction The crisis caused by the pandemic in the country and at global level has led to a debate about new approaches to manage the economy and the future… Continue reading The economic reforms — looking back to look ahead

Credit Where It’s Due – “on credit growth”

Synopsis: Lack of Credit growth has lagged economic recovery. Here’s why that’s about to change. Introduction April-June GDP estimates show that there is strong evidence of a sharp recovery in the economy after second-wave lockdowns. Although broad-based indicators of real economic activity like mobility, energy demand, and GST e-way bill generation are now substantially higher… Continue reading Credit Where It’s Due – “on credit growth”

Our GDP needs the HDP

Source: Indian Express Relevance: Achieving sustainable and inclusive growth for all. Synopsis: Despite the progress achieved in the field of technology; inequality and deprivation are still an important issue that needs to be addressed in India. Measuring Human Development Product might be a solution because GDP just indicates economic growth, while Human Development Product can… Continue reading Our GDP needs the HDP

Explained: What is GDP and why it matters

News:Recently,due to a decline in India’s Gross Domestic Product(GDP) growth rate,the ruling party has questioned the merit of the basic variable used to map economic growth that is, the GDP. Facts: Origin of GDP and GNP: The modern-day definitions of GDP and GNP can be traced back to Simon Kuznets who was entrusted with the… Continue reading Explained: What is GDP and why it matters

Gross Domestic Product growth falls to 4.5% in Q2 of 2019-20

News:According to data released by the Central Statistics Office (CSO),India’s Gross Domestic Product(GDP) growth has fallen to 4.5% for the second quarter (July-September) of the year 2019-20. Facts: About the slowdown in GDP growth rate: The GDP growth rate has slowed down for the sixth consecutive quarter at 4.5% from 5% in the preceding quarter.… Continue reading Gross Domestic Product growth falls to 4.5% in Q2 of 2019-20

Two ways to look at GDP

Researchers and academicians have raised doubts about the new methodology employed by the Central Statistics Office(CSO) to estimate India’s gross domestic product(GDP). In 2015,CSO had introduced a new series of National Account Statistics. The new series made several changes to estimate India’s gross domestic product(GDP).In particular,it revised the base year from 2004-05 to 2011-12.  However,the… Continue reading Two ways to look at GDP